Congress Unveils New CLARITY Act Draft Impacting Crypto Regulation in 2025

Congress has released an updated draft of the CLARITY Act, aiming to bring regulatory clarity to the cryptocurrency sector, with a particular focus on DeFi and blockchain developers. The bill exempts developers and wallet providers from money transmitter classification if they do not control networks, significantly reducing compliance burdens.

The legislation also opens the door for banks to integrate blockchain technology and digital assets, while clearly delineating regulatory roles between the SEC and CFTC. Two versions of the bill are under review by the House Financial Services Committee and the House Agriculture Committee, with a markup session scheduled for this Tuesday.

Market participants view this as a pivotal moment for crypto regulation, potentially setting a precedent for institutional adoption and broader market stability. The CLARITY Act could serve as a catalyst for innovation, particularly in decentralized finance and blockchain infrastructure.